On March 12th, Apple announced on its official website that it will expand and add laboratories in Shanghai and Shenzhen to support intelligent manufacturing, product reliability, quality, and material analysis.
The reporter from First Financial News learned that this is the first time Apple has officially announced the establishment of a new application research laboratory in China.
Apple has stated that the Shanghai laboratory will enhance the capabilities of the Shanghai research center, and the Shenzhen laboratory, which will be opened later this year, will deepen cooperation with local suppliers and enhance testing and research capabilities for products such as iPhone, iPad, and Apple Vision Pro.
According to Apple's official data, the company's investment in advanced application research laboratories in China has exceeded 1 billion yuan, and this investment will continue to grow with the addition of new facilities in Shenzhen.
In a press release released by Apple, Vice President and Managing Director of Greater China, Ge Yue, stated that Apple's newly built laboratory in China is a "world-class facility" that will support Apple in providing users with "world-class products.".
Apple Inc. stated that Apple Labs provides resources to engineering and design teams worldwide to help them test prototypes and make improvements to ensure the quality and performance standards of Apple devices. Moreover, Apple's laboratory is located adjacent to the production and assembly base, allowing engineers to work closely with suppliers, share expertise in high-tech production processes, achieve real-time adjustments, and help suppliers improve efficiency and save valuable time.
An industry insider analyzed to a reporter from First Financial that "Apple already had a research and development team in Shanghai, and the newly built laboratory can enhance its local research and development capabilities, solve problems on-site, shorten the research and development process and cycle. This is an important measure for the company to increase local research and development."
Apple invests billions of dollars annually in research and development, and is showing an increasing trend year by year. In 2023, Apple's research and development expenditure was approximately $30 billion, a year-on-year increase of 14%. Apple's R&D budget includes investment in new software and features for existing products such as the iPhone.
The Chinese market is one of the most important markets for Apple. Until now, over 95% of Apple's products are still manufactured and assembled in China, which has driven the booming development of China's supply chain in the past decade and also helped Apple establish a unique channel to enter the Chinese market, including the ability to operate dozens of stores, sell products, and operate multiple online services.
According to JPMorgan Chase's forecast, by 2025, the share of Chinese supply chain companies in Apple's iPhone manufacturing will significantly increase, rising from approximately 7% in 2022 to 24%.
Apple's announcement of increased R&D investment in China is currently facing a decline in iPhone sales. The company's stock price has fallen by over 10% since the beginning of this year, and its market value has shrunk to $2.77 trillion.
Apple CEO Tim Cook stated at the company's annual shareholder meeting on February 28th that Apple is vigorously increasing its investment in artificial intelligence (AI) and plans to disclose more plans regarding the use of generative AI later this year.